The "Qualified Business Income" deduction

[Belgarath]

Just wanted to make sure I've got this right. IF someone qualifies for this, it is a deduction taken on the individual owner's 1040. In other words, for unincorporated owner you would calculate Schedule C income and corresponding contribution as usual, and THEN, when they file their 1040, they would take an additional deduction from the otherwise taxable income (if they qualify).

[Bird]

I'll give that a tentative "yes."  Looks like line 9 of the 1040.

And, FWIW, it appears they have done a major revamp of the 1040 and schedules, with self-employeds taking their pension deductions on Schedule 1, line 28, instead of the 1040, line 28.  

[Larry Starr]

5 hours ago, Belgarath said:

Just wanted to make sure I've got this right. IF someone qualifies for this, it is a deduction taken on the individual owner's 1040. In other words, for unincorporated owner you would calculate Schedule C income and corresponding contribution as usual, and THEN, when they file their 1040, they would take an additional deduction from the otherwise taxable income (if they qualify).

Yes, it is a deduction.  So, for example, if a DB contribution for a sole prop with no employees (just to make it simple) of, say, $100,000 brings the income of the couple down to, say, $300,000 (and it otherwise qualifies), the deduction on the return will now go up by $60,000 (20% of $300k) and the total deduction will now be $160,000 because of the $100k db plan deduction.  These will be major planning opportunities.

[Belgarath]

Thank you both.